Ethics on Boat Sale

[Tom Winters]

And the good news is that you won't be blown up by fuel in the hulls.

 

[DennisW]

My first thought was that you probably helped this guy launder some drug money through the system. Ethics? The guy has none.

 

[SkipperJohn]

OFAC (Office of Foreign Asset Control) & the US Treasury Department forbids cash transactions in excess of $10,000. This is considered money laundering. I thought at first this was going to be a classic example of this. Gives you 20 in cash, then renegs and gets a clean check back.
Unlike most movies of today i was fooled.
I agree, being a captain & around boats for over 35 years I have seen and taken part in many surveys and in almost all cases somewhere along the deal you will hear "yeah, she's ok, but for this money I can get you something better". After the first few times you know this line is just something to get them to survey more boats.
I'm happy this worked out for you. You now have experienced both of the happiest days in boat ownership. The day you buy it and the day you sell it. Congrats.

 

[Cacia]

My first thought was that you probably helped this guy launder some drug money through the system

Really? He has a business, where he would have a lot of cash. I did not see any signs of a shady guy. Maybe....

I see a lot of people operating on cash in Hawaii. With the 4.5% Gross Excise tax on everything coming and going, there is a lot of bartering too. Hire a tutor for your kid, you are both paying the tax.

I thought at first this was going to be a classic example of this. Gives you 20 in cash, then renegs and gets a clean check back

wow...I had not thought about that, that is exactly what was going to happen. You know, it could not have been set up any more "classic" I had never heard of that.

I knew over 10 K is reported to the IRS, at the bank, but I had no idea cash transactions over 10K were considered money laundering.

I just pulled out more than that from ATMs because I have an internet bank and we wanted to buy some ATV's for my son and so I called the bank (24/7) and then drove around to many ATMs over the holiday weekend to get the cash to buy them before leaving town.

So..was that illegal? I mean, we had a bill of sale notarized and everything.

 

[SkipperJohn]

I'm afraid I don't know for sure. I work in the banking industry and are more familiar with the institutional regs. I was under the impression that private transactions exceeding $10,000 in cash are illegal, but I don't know for sure nor can I recall where I got that from. I just scanned the net and found nothing but institutional law. I guess I am not wording my inquiry correctly. But I wouldn't worry.

 

[Cacia]

...oh, thank-you. I have a feeling you are right.

I think it is criminal that the IRS can demand anything they want from their own citizens and yet Homeland Security has to go to court, and jump through hoops, myself.

I feel the need to resist a little.

I do find myself wondering how it could play out...a really big cash transaction. I wonder what would tip the government off? (in the absence of an audit) If I pull more than 10K from an ATM (Multiples) does that trigger anything?

 

[adurso]

...oh, thank-you. I have a feeling you are right.

I think it is criminal that the IRS can demand anything they want from their own citizens and yet Homeland Security has to go to court, and jump through hoops, myself.

I feel the need to resist a little.

I do find myself wondering how it could play out...a really big cash transaction. I wonder what would tip the government off? (in the absence of an audit) If I pull more than 10K from an ATM (Multiples) does that trigger anything?

Those are institutional limits, private parties may do whatever they please; but when you deposit the 10k or better the institution must report it.

If you developed a habit of large deposits and then withdrawals some IRS flags would go off.

Guy I did my undergrad work with majored in accounting, took his CPA, went to work as an IRS agent. Did that for ten years then opened an accounting firm in Delaware (owned and operated by IE Dupont Corp) and made a kaboodle because he knew all the tricks. To keep current he has been recruiting agents every few years as things change. The G cannot compete with what he will pay...

 

[Cacia]

Oh yes, I just met with a former field IRS agent who is doing private CPA work. They are called "enrolled agents" or something?

He is really good, and you feel confident getting advice from him with that background.

I'm working on reducing the tax basis of something.....legally of course. I'm very glad to have found him. I have seen 3-4 accountants this past year, and was impressed with how little they seem to really know. HSA's, etc. -- basic stuff for accountants.

SPEAKING of Banks: Indy mac depositors were circling the block yesterday, trying to get their money out! OMG..like the depression.

 

[Hank49]

I knew over 10 K is reported to the IRS, at the bank, but I had no idea cash transactions over 10K were considered money laundering.

So..was that illegal?

Only in America. ?? I sold a boat here a couple years ago. It went like this,
Me "Jim, want to buy my boat"?
Jim, "yeah...how much"
Me, "$25,000"
Jim, "OK, sold"
The next day Jim brought me a sack full of money. My biggest worry was getting to the bank without getting robbed. But they did say the Central Bank needed to know what any deposit over $10K was from. I told them I sold my boat and that was that.

 

[Cacia]

lol

Hawaiians (he was) are kinda like that too.

How about the BVI? Why do so many incorportate there and how does that work?

Soo...we both sold boats! Cheers!